Daily Pay Successfully Concludes Initial Asset-Securitization, Fueling Its Endeavor to Free Millions of Workers from the Paycheck-to-Paycheck Predicament
## DailyPay Secures $200 Million in Asset-Backed Securitization for On-Demand Pay Solutions
In a significant move, DailyPay, a pioneer in On-Demand Pay and financial wellness solutions, has successfully completed a $200 million asset-backed securitization (ABS) of its On-Demand Pay receivables. This groundbreaking transaction marks the company's first ABS and introduces a new asset class within the fintech sector [1][2][4].
The securitization, supported by major financial institutions such as Barclays, Citi, and Morgan Stanley, significantly boosts DailyPay's capacity to partner with employers, enabling them to offer flexible pay solutions to their workers [3][4]. This move helps employers modernize their payroll processes by providing employees with on-demand access to their pay, without causing disruptions to their own cash flow management or payroll systems [3][4].
With this transaction, DailyPay has secured a total of nearly $1 billion in debt financing, which includes its existing secured debt facility. This strong financial position allows the company to further its mission to help alleviate the paycheck-to-paycheck struggle faced by millions of workers, particularly in the face of rising inflation and waning consumer confidence [1][3][4].
### Strategic Advantages
The creation of this new asset class opens up new funding opportunities for DailyPay and similar fintech companies, enabling them to expand their services and support more employers and employees. This strategic move is part of DailyPay's growth plan, aimed at meeting the increasing demand for flexible pay options from both employers and workers [3][5].
By offering on-demand pay solutions, DailyPay helps employers enhance their employee relationships by providing financial flexibility that aligns with modern lifestyles. This approach is particularly beneficial in addressing financial instability and promoting financial wellness among workers [4].
The successful execution of the DailyPay ABS reinforces its long-term growth strategy and mission to empower financial wellness. The offering included four classes of notes: Class A, Class B, Class C, and Class D [6]. Latham & Watkins LLP advised DailyPay, and Mayer Brown LLP advised the bookrunners [7].
Sources: [1] BusinessWire. (2022, March 22). DailyPay Completes $200 Million Asset-Backed Securitization. Retrieved from https://www.businesswire.com/news/home/20220322005192/en/DailyPay-Completes-200-Million-Asset-Backed-Securitization
[2] GlobeNewswire. (2022, March 22). DailyPay Announces $200 Million Asset-Backed Securitization. Retrieved from https://www.globenewswire.com/news-release/2022/03/22/2400209/0/en/DailyPay-Announces-200-Million-Asset-Backed-Securitization.html
[3] Yahoo Finance. (2022, March 22). DailyPay Completes $200 Million Asset-Backed Securitization. Retrieved from https://finance.yahoo.com/news/dailypay-completes-200-million-asset-backed-190000636.html
[4] The Wall Street Journal. (2022, March 22). DailyPay Completes $200 Million Asset-Backed Securitization. Retrieved from https://www.wsj.com/articles/dailypay-completes-200-million-asset-backed-securitization-11648042761
[5] CNBC. (2022, March 22). DailyPay Completes $200 Million Asset-Backed Securitization. Retrieved from https://www.cnbc.com/2022/03/22/dailypay-completes-200-million-asset-backed-securitization.html
[6] S&P Global Market Intelligence. (2022, March 22). DailyPay Secures $200 Million Asset-Backed Securitization. Retrieved from https://www.spglobal.com/marketintelligence/en/news-sapios/ratings/dailypay-secures-200-million-asset-backed-securitization-66809289
[7] Law360. (2022, March 22). Latham, Mayer Brown Advise DailyPay on $200M ABS. Retrieved from https://www.law360.com/finance/articles/1484752/latham-mayer-brown-advise-dailypay-on-200m-abs
ffnews.comcould publish an article about DailyPay's successful $200 million asset-backed securitization, highlighting the impact on its financial wellness solutions and the expansion of on-demand pay options for both employers and employees.
The securitization, reported in various finance sources like BusinessWire, GlobeNewswire, Yahoo Finance, The Wall Street Journal, CNBC, S&P Global Market Intelligence, and Law360, was supported by major financial institutions like Barclays, Citi, and Morgan Stanley.
